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News & Politics News & Politics

Outsourced: American Corporations Create More Jobs Overseas Than At Home

Posted by on Apr. 27, 2012 at 6:10 PM
  • 39 Replies

Outsourced: American Corporations Create More Jobs Overseas Than At Home

 With the nation’s unemployment rate still above eight percent, millions of Americans are looking for work, and the country’s biggest corporations are hiring. According to a new report from the Wall Street Journal, however, many of those corporations are adding jobs overseas at a faster pace than they are at home. Even worse, others are cutting their domestic workforces while adding jobs in other countries at a rapid pace:

Those companies, which include Wal-Mart Stores Inc., WMT +2.70% International Paper Co., Honeywell International Inc. and United Parcel Service Inc., boosted their employment at home by 3.1%, or 113,000 jobs, between 2009 and 2011, the same rate of increase as the nation’s other employers. But they also added more than 333,000 jobs in their far-flung—and faster-growing— foreign operations.

The companies included in the analysis were the largest of those that disclose their U.S. and non-U.S. employment in annual securities filings. All of them have at least 50,000 employees. Collectively, they employed roughly 6.4 million workers world-wide last year, up 7.7% from two years earlier. Over the same period, the total number of U.S. jobs increased 3.1%, according to the Labor Department.

Many of the companies are adding jobs in the U.S. but adding even more overseas — reversing a trend from a decade ago in which they were outsourcing American jobs to other countries. But some companies, like Wal-Mart, have boosted overseas employment while maintaining flat job growth in the U.S., and others, like UPS, haveslashed jobs at home even while adding them in other countries:

A similar Wall Street Journal report last April found that America’s largest multinational corporations outsourced more than 2.4 million jobs over the last decade, even as they cut their overall workforces by 2.9 million.

President Obama has proposed a tax credit to encourage businesses to bring jobs from overseas back to the United States in order to relieve high unemployment and boost economic growth. Republicans and corporations, meanwhile, have blamed outsourcing on high taxes, even though corporations pay less in America than they would in most of the developed world.

by on Apr. 27, 2012 at 6:10 PM
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Replies (1-10):
Mamawto4
by Bronze Member on Apr. 27, 2012 at 8:55 PM

Would you rather the companies didn't grow at all?  Walmart will go where the customers are, it's hard to sell groceries to someone that lives 1000 miles away from the store.  same for UPS, they aren't going to send someone from the US to pick up a package in "Anywhere China" and take it only 100 or so miles away.

BTW the US has the highest corporate tax rate in the world.  The world average is 24% while in the US it's 35%.  And that money is taxed first at the corporate level, then again at the personal level, which is why the capital gains rate is so low (because it's double taxation).

pvtjokerus
by Gold Member on Apr. 27, 2012 at 9:07 PM
1 mom liked this

What the hell do you expect with U.S. high corporate tax?  The demos want to increase it more...."hey, that sounds like a great idea.....how about driving the rest of corp America overseas?!" 

_Kissy_
by on Apr. 27, 2012 at 9:21 PM
1 mom liked this
corporations shouldn't hoard 80% of the money..government has to print money in order to makeup what corps are not paying in their share of taxes or wages. so now they pay the lowest tax rate practically ever and get to send the jobs overseas and hoard their money, crash their economy, sign suicide pacts, and destroy their environment
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TruthSeeker.
by CM Junkie on Apr. 27, 2012 at 9:25 PM
6 moms liked this

 I would like to see tax breaks for corporations that keep jobs here.

matreshka
by Gold Member on Apr. 28, 2012 at 9:17 AM

Well it's the union's fault. its the tax code's fault, its government regulation's fault.  Its everyone's fault except the corporations themselves. wink mini

NancSBRN
by Bronze Member on Apr. 28, 2012 at 11:06 AM
1 mom liked this

I  Blame Nixon darn him for wanting to do business with china in the first place ;)

I agree these companies are part of a global economy BUT they are bad US (citizens) and do not pay the taxes they owe now so why give them even more tax breaks.

We saw this her locally Hyundai and Sony both paid no taxes in Eugene and Springfield to create JOBS here as soon a the Tax Breaks ran out so did they.  Sure they created jobs for a couple years but once they where ask to support the community with taxes they chose to leave the rest of us PAY our TAXES I make far less in my micro business but I PAY MY TAXES.

Quoting matreshka:

Well it's the union's fault. its the tax code's fault, its government regulation's fault.  Its everyone's fault except the corporations themselves. wink mini


rccmom
by Gold Member on Apr. 28, 2012 at 11:17 AM
2 moms liked this


Quoting Mamawto4:

Would you rather the companies didn't grow at all?  Walmart will go where the customers are, it's hard to sell groceries to someone that lives 1000 miles away from the store.  same for UPS, they aren't going to send someone from the US to pick up a package in "Anywhere China" and take it only 100 or so miles away.

BTW the US has the highest corporate tax rate in the world.  The world average is 24% while in the US it's 35%.  And that money is taxed first at the corporate level, then again at the personal level, which is why the capital gains rate is so low (because it's double taxation).

This is what bothers me. I know that we have the highest corporate tax rate on paper, but many companies do not pay that rate. The effective corporate tax rate is only 12.1 % due to loopholes and the ability of corporations to dodge paying taxes by being overseas. I think we need to tax them more for being overseas, and tax them less for being in the US.

I also don't undestand that Capital Gains is double taxation. I mean part of it may be, but not all of it. If I buy something for $10, but then sell it for $25, being taxed on $15 profit would not be double taxation because I did not have that $15 before.

bluerooffarm
by Silver Member on Apr. 28, 2012 at 11:38 AM
4 moms liked this

 Are you on the list for an element TV?  What kind of bakeware do you have in your home?  The KAF recycled bakeware?  What skillets do you have?  All Lodge cast iron?  What jeans are you wearing?  Buddies? 

We put our money wear our mouths are.  Which was why we wanted to buy a Chevy Volt instead of our Prius, but was unable to locate any anywhere near our house.  We buy American goods.  We haven't set foot in a Walmart in YEARS.  Hubby and I alone can't do it, but if you do it too, there will be more of us.  Want to save American jobs, want to keep Amer companies here?  THEN BUY AMERICAN PRODUCTS!!! They are out there!

http://madeinusaforever.com/

NancSBRN
by Bronze Member on Apr. 28, 2012 at 11:49 AM

I have no problem with importing goods I bought quite a bit Made In American product this Christmas and on purpose ;)  the truth is not everything will be produced here but if we all seek on more Made in America products it will help grow jobs.

Also some companies are bring jobs back her Catapillar is one company, I forget the name but one toy company is and gosh maybe someone needs to research that. :)

JakeandEmmasMom
by Gold Member on Apr. 28, 2012 at 12:57 PM
2 moms liked this

 

Quoting bluerooffarm:

 Are you on the list for an element TV?  What kind of bakeware do you have in your home?  The KAF recycled bakeware?  What skillets do you have?  All Lodge cast iron?  What jeans are you wearing?  Buddies? 

We put our money wear our mouths are.  Which was why we wanted to buy a Chevy Volt instead of our Prius, but was unable to locate any anywhere near our house.  We buy American goods.  We haven't set foot in a Walmart in YEARS.  Hubby and I alone can't do it, but if you do it too, there will be more of us.  Want to save American jobs, want to keep Amer companies here?  THEN BUY AMERICAN PRODUCTS!!! They are out there!

http://madeinusaforever.com/

 I agree with this. 

There was a story on the news here just the other night about a local home builder who decided to build a house where every single thing, from the nails to the appliances, were made in the USA.  His biggest issue was sourcing everything, and they had to change the dimensions of certain things to be able to use American made products.  But, do you know, when it was all said and done he said that it only cost 1% - 2% more to use American made materials?  But he said the quality was 100% better.  He went on to make the point that if all home builders just started using 10% American made materials it would create 250,000 American jobs.

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